Iberdrola gives Kansai a stake in the EUR 1.28 billion German offshore wind project Windanker
Iberdrola has given Japanese utility Kansai a stake in its Windanker offshore wind project, already under construction. The Japanese utility will co-invest in the asset, taking a 49% stake, and Iberdrola will retain control with the remaining 51%.
The Windanker offshore wind farm, located in the German Baltic, will have an installed capacity of 315 MW and will be operational in the last quarter of 2026.
The deal values 100% of the offshore wind farm at EUR 1.28 billion, implying a multiple of EUR 4.1 million per MW and 13.5 times EBITDA. Iberdrola will control and manage the assets, providing construction, operation and maintenance and other corporate services.
The agreement strengthens the relationship between the two companies, following Iberdrola's acquisition of Electricity North West (ENW), in which Kansai has a 12% stake, and allows Iberdrola to advance in its alliance and asset rotation plan, accelerating its growth in high credit quality countries while consolidating its financial strength.
The Windanker wind farm will have 21 wind turbines with a unit capacity of 15 MW and has already sold 100% of its production under long-term contracts.
‘This transaction will allow us to accelerate our growth in offshore wind with a strategic partner such as Kansai. The Windanker farm, whose energy is already sold to long-term industrial customers, demonstrates the potential of renewables to promote the industrialisation of Europe with indigenous, clean and competitive energy’, said Iberdrola's chairman, Ignacio Galán.
Leader in offshore wind
Iberdrola currently has 2,400 MW of offshore wind power installed and plans to reach 4,800 MW by the end of 2026. The company already has four offshore wind farms in operation: Saint Brieuc (off the coast of Brittany, France), West of Duddon Sands (located in the United Kingdom, on the coast of the Irish Sea); Wikinger (in the German Baltic), and East Anglia One (one of the largest offshore wind farms in the world, on the British North Sea coast).
In addition, the company has four other wind farms under construction that will come on stream in 2025 and 2026: Baltic Eagle in Germany, whose turbines are already fully installed; Vineyard Wind One, the first large-scale wind farm in the United States; East Anglia Three in the United Kingdom; and the Windanker wind farm in Germany, the subject of the agreement with Kansai.
Investment in these wind farms, both operational and under construction, now totals 15 billion euros.
In addition, last summer Iberdrola was awarded the East Anglia Two project in the UK and the New England Wind 1 project in Massachusetts (USA).
The company also has secured seabed rights for future wind farms in the UK, continental Europe, the US, Australia and Japan.
Alliances for growth
Iberdrola has recently closed several long-term alliances to accelerate its growth and boost the decarbonisation of the economy while maintaining its financial strength, including the following:
- Last October, Iberdrola closed the purchase of the British company ENW to continue expanding its network business, with Kansai as a partner.
- In January 2023 it signed an alliance with Norges Bank to co-invest in renewables which, after its expansion, will reach 2,500 MW.
- In December, Iberdrola signed an agreement with Masdar to co-invest up to 15 billion in offshore wind and green hydrogen in Germany, the UK and the US, the first milestone of which was the agreement announced in July for the Baltic Eagle offshore wind farm in Germany.
- In September 2023, the company closed a partnership with GIC for the expansion of transmission grids in Brazil for 430 million euros.
- Last February, the company sold more than 8,400 MW of combined cycle gas plants in Mexico for 6.2 billion dollars.
- Iberdrola and BP launched a joint venture in March 2023 to deploy 11,700 fast-charging points in Spain and Portugal and have formed a 50/50 joint venture to develop a 25 MW green hydrogen project, the largest plant in Spain.
- Iberdrola and MAPFRE have continued to advance their strategic alliance by incorporating 150 new MW through a joint venture, which already has 450 MW.
- Iberdrola also signed an alliance with Energy Infrastructure Partners to co-invest in the Wikinger offshore wind farm and boost its offshore wind portfolio.
